The Rate Charged by Banks with Excess Funds Is Referred

question 98

Multiple Choice

The rate charged by banks with excess funds is referred to as the interbank offered rate; they will accept interbank deposits at the interbank bid rate.

• A)The spread is generally 1/8 of 1 percent for most major Eurocurrencies.
• B)The spread is generally referred to as "the TED spread".
• C)The spread is generally referred to as the bid-ask commission.
• D)None of the above